Early days yet but I'm wondering if some of these new offerings are going to succeed given this week's falls across the board. With the big drops in equities I had expected quality bonds to stay strong or even gain traction - after all, that cash being generated by all those sales has to go somewhere and I thought that fixed income might benefit.
But that doesn't seem to be happening and there are a number of established big names, particularly in the Prefs and Pibs that are now generating yields in excess of 6%.
Yes, we had that scare a while ago when "irredemables" could apparently be cancelled at par but some issuers reassured with confirmation that they had no intention of doing any such thing.
Personally, I've added a few more NatWest 9% Prefs with a yield of 6.2% and Ecclesiastical 8.625% with a yiled of 6%
I can see interest rates creeping up but not by all that much.
Am I mad, deluded or just stupid? Or maybe just jumping the gun?
Be interested in hearing what others here think about the current situation and where things might go from here.